Asked why the bank was charging so much, he said it was to discourage people moving off variables, as they allow the bank more flexibility to increase interest rates.He added that the high rates reflected the fact the bank was still finding it expensive to raise funds.

Defend

A Permanent TSB spokesman did not try to defend the high fixed rates when asked how it could justify them.

“These rates will be withdrawn very shortly and replaced with a new suite of fixed-rate products for existing customers which will represent a quantum improvement compared to the rates currently available.”